The Financial Post reports in its Thursday edition that some players in Wall Street's chattering classes are making the case that Broadcom should be a member of the Magnificent Seven, possibly replacing the stumbling Tesla. A Bloomberg dispatch to the Post says relentless spending on artificial intelligence computing gear has juiced the chipmaker's revenue and profits, driving a more than 340-per-cent rally since the start of 2023 and vaulting it into an elite cohort of stocks with a market value of at least $1-trillion (U.S.). Meanwhile, Tesla, one of the original Mag Seven, has tumbled 22 per cent this year as chief executive officer Elon Musk's foray into U.S. politics sparked a backlash against the electric-vehicle maker. Broadcom, on the other hand, is expected to see its sales jump 22 per cent in fiscal 2025 and 21 per cent in fiscal 2026. That growth is second only to Nvidia. Tesla's revenue, by contrast, is expected to shrink 1 per cent this year. "Broadcom would be a fair substitute for Tesla," according to Michael O'Rourke at Jonestrading. "Simultaneously we have witnessed Broadcom's business grow with the AI space while Tesla's core business has been challenged." Apple is the biggest Mag Seven laggard this year.
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